ACH transactions are computerized payments that provides benefits to customers and merchants in an inexpensive way. It is controlled by an automated clearing house network, funds are transferred directly from on bank account to another. This type of payment are automated or recordkeeping and offers an easy way of the electronic payment system. ACH payments are the most popular form of payment transfer method for many businesses that they can offer to their consumer, as it cost low transaction fees and convey predictable processing timelines.
Every year more than 25 billion ACH Transactions are been processed by the ACH network. Radiant pay facilitates ACH and Check Processing, stat testing the system with radiantay.com to know the better language of ACH Payments.
Now! How Does This ACH Network Work? Let Us Explain
Many business entities pay wages through direct deposit or let us say consumers pay bills electronically, nowhere ACH payments are responsible for those payments.
Some Takeaway of ACH Payments
- It is an electronic bank transfer that is processed through the Automated Clearing House Network.
- ACH Payments are most commonly used for employers to pay the payrolls directly into the bank accounts.
- ACH transfers are inexpensive, quick, secure, and fast.
- It is easy to keep the record of income and expenses with every transfer, however the bank creates an electronic record of ACH transfer.
Types of ACH Transfer
Gone those days when you have to walk-in for bill payments or wait for a check to clear, ACH transfer make life easier for consumer and merchants. One can conveniently transfer or receive the amount just sitting at home. ACH Network Processes two kinds of transaction i.e.
Direct Deposit is a kind of electronic payment made from a business entity to the consumer. It includes:
ACH Direct Payments can be used by single persons, businesses, and other entities to send money. For e.g, if you’re recharging your DTH Plan online with your bank account, that’s an ACH direct deposit.